With a historic 722.5% surge on its first day of public trading, conservative media powerhouse Newsmax stunned Wall Street.
The conservative news network, which rose to prominence as an alternative to Fox News, saw its shares skyrocket from $10 to $82.25 by market close.
This development signals extraordinary investor confidence in right-leaning media amid a landscape dominated by liberal outlets.
Newsmax made its debut on the New York Stock Exchange under the ticker symbol “NMAX.” The initial public offering raised $75 million through the sale of 7.5 million Class B shares.
Trading was so volatile that circuit breakers kicked in, temporarily halting trading 12 times throughout the day as the stock price continued its meteoric rise.
The company’s successful public launch defied current market trends where IPOs have become increasingly rare due to economic uncertainties.
This success comes after Newsmax already raised $225 million in February through a private preferred offering, demonstrating strong financial backing for conservative media.
By the closing bell, Newsmax achieved a market valuation exceeding $7 billion.
The massive value places the conservative news outlet on par with established media giants like The New York Times Company and CBS parent company Paramount.
It also means that Newsmax has surpassed the combined value of media companies Tegna and Sinclair.
“I think there was a demand for more competition against Fox,” said Newsmax founder and CEO Chris Ruddy, who describes the outlet as “center-right.”
The remarkable market debut reflects growing investor confidence in conservative media alternatives.
Following President Donald Trump’s election, Newsmax established itself as the fourth-highest-rated cable news channel in America, trailing only Fox News, CNN, and MSNBC.
For the first half of 2024, Newsmax reported a revenue of $79.83 million, up from $53.33 million during the same period in 2023.
The capital raised through the IPO is expected to fuel further expansion of the network’s digital presence and other growth initiatives.
Ruddy, a longtime friend of President Trump, has successfully positioned Newsmax as a trusted alternative for conservatives who feel underserved by mainstream media.
While the company has faced legal challenges from voting technology firms over 2020 election coverage – including a $40 million settlement with Smartmatic – these issues have not dampened investor enthusiasm.
The IPO was conducted under Regulation A+, which allowed for a streamlined process with eased disclosure requirements.
Following the offering, Newsmax has roughly 128.4 million shares outstanding, giving the company a market capitalization of $10.72 billion based on the closing price.
Newsmax’s extraordinary market performance follows similar patterns seen with other conservative media companies like Trump Media and Technology Group and video platform Rumble.
